Ex-Conn. resident admits running $100M Ponzi scheme that caused investors ‘financial misery’

Ex-Conn. resident admits running $100M Ponzi scam

NEW HAVEN, Conn. — Authorities say a former Wethersfield, Conn., resident has pleaded guilty to federal charges he operated a $100 million Ponzi scheme that ripped off hundreds of investors.

Federal prosecutors and the FBI say Michael Goldberg stole more than $30 million in 12 years by promising investors huge returns quickly on money they gave him to buy diamonds for resale or to buy foreclosed assets from the JPMorgan Chase & Co. bank.

Prosecutors say he didn’t invest the money and paid old investors with funds from new investors. They say the result was “financial misery” for many of them.

Goldberg revealed his scheme to authorities. He’ll be sentenced Dec. 2 on three counts of wire fraud. The 39-year-old faces up to 60 years in prison.

A defense attorney hasn’t returned a phone message left after business hours Monday.